Loan Frequently Asked Questions

What interest rates do churches pay on loans?

Interest rates may vary. Please call us at 1-800-543-2343 or email us for the latest rates.

Does Church Investors Fund make loans to any kind of church?

No. Church Investors Fund lends money to NAB and like-minded churches and ministries for the acquisition, construction and remodeling of churches, parsonages and other projects.

Why should I borrow from Church Investors Fund?

Much of the interest paid on a loan with Church Investors Fund goes back into our churches and individuals within our churches. The funds loaned are made available because churches and individuals within our conference believe in investing for a cause that reflects their values. Many times, there are investors within the borrowing church that are loaning the funds.

How much of the construction cost can I borrow?

We lend up to 70%- 80% of the total cost of most projects, whether new construction or renovations.

Is there an origination fee on new loans?

Yes. The loan origination fee is between 0.25 and 0.50% of the amount borrowed, depending on the country.

How long are loans amortized?

All Church Investors Fund loans are amortized for a maximum of 25 years.

What type of interest rate structure do you offer?

Our loans come with a 3 or 5 year term. The interest rate is a fixed rate for the term, and is re-evaluated at maturity of the term. Loans are renewed based on the then current market rate.

Do I need an appraisal for a loan?

Typically, we will waive the need for an appraisal on projects valued under $1,000,000 that are a normal loan to value ratio.

Is there a prepayment penalty for early pay down?

No. There is no prepayment penalty for early paydown of principal when the money is raised from within the church.

Do we need to prove our cash flow in order to get a loan?

Yes. Proven cash flow for the past four years is necessary to help us make an informed decision.

Do we pay interest and principal during the construction phase?

No. During the draw stage (construction) of a new project, only interest payments are made. At the completion of the project, the loan is modified to include principal and interest in the payment.

Does Church Investors Fund give personal loans?

No. We are limited to working with like-minded non-profit corporations.

What should our church do if we are thinking about building?

It is important that the church contact professional counsel in areas of architecture, construction, finance, etc. as early in the process as possible. You should also contact us so that we can assist you and prepare in making the necessary plans.